Analysts: An AT&T foray into Europe carries numerous risks

AT&T (NYSE:T) CEO Randall Stephenson once again kindled speculation this week that the company is interested in deals in Europe, but a push across the Atlantic carries numerous risks, analysts argue. Speaking at the Goldman Sachs Communacopia conference this week, Stephenson would not reveal any further details other than to say AT&T would welcome significant deals at the right price. "If there were opportunities that presented a good value, of course we would do it," he said. He also said the LTE and mobile data explosion that has overtaken the United States is migrating to Europe, and the market there is "going to evolve very quickly." Still, analysts argue AT&T would face an array of challenges, including fragmented regulatory regimes, price-sensitive markets and not enough economies of scale to make a major deal worthwhile. Stephenson acknowledged some of the cons himself--he noted, for example, that spectrum licenses are usually issued with an indefinite term in the United States but are mainly limited to 10-12 years across most countries in Europe. Article

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